Big Islands Amusement Park
Big Islands Parks & Entertainment (Big Islands or the Company) is a leading
entertainment company that owns 10 premier theme parks as follows: Big Islands
Georgia, Discovery Adventure Place, White Rapids Orlando, Big I
THE BALANCE SHEET
The balance sheet
Presentation of assets, liabilities and shareholders equity at a
point in time
Assets and liabilities grouped according to common characteristics
Provides useful information on:
Why do we care so much about the income statement?
Does the simple income statement provide enough
The income statement
Companies have considerable freedom as to how they
present their income st
Review of the accounting process
The Accounting Process
Determine the effect on the accounting equation
Determine whether to debit or credit affected accounts
Record transactions in the journal
Post transactions to the ledger
Prepare an una
The accounting environment
Cash and receivables
Cash and equivalents
Includes currency, coins, balances in checking accounts, and items
for deposit (checks, money orders, etc.)
Amounts readily available to pay off debt or to use in operations,
without any legal or contractu
Valuation of inventory
Valuation of inventory is not a routine procedure that
accountants or users of financial statements are
Why? Typically, inventory is put on the balance sheet at cost and
removed from the balance at cost
What is inventory?
The stuff a company sells
Assets a company will sell in the normal course of business
Or, is in production to be sold
Or, is used in production of goods to be sold
What companies wont have inventory to sell?
Where GAAP meets the street
Who cares about this?
Why does anyone care about this?
What other information is needed?
The value of financial statement analysis lies in its ability to
Who cares about this?
The statement of cash flow is an essential component of
any set of financial statements
Cash flow, while volatile short-term, is key to operations
Pay utilities and essential services
Adjusting entries and financial
Review from last time
What steps have we covered so far?
Unadjusted trial balance
ACCT251 Intermediate Accounting I Chapter 4 Quiz Name_ 1. A company is not required to report a per share amount on the face of the income statement for which of the following items? a. Net income b. Prior period adjustment c. Extraordinary item d. Discon
EXERCISE 4-6 (3040 minutes) (a) Multiple-Step Form WEATHERSPOON SHOE CO. Income Statement For the Year Ended December 31, 2010 $980,000 516,000 464,000
Net sales Cost of goods sold Gross profit Operating Expenses Selling expenses Wages and salaries Depr.
1. Chapter 4 presents a detailed discussion of the concepts and techniques that underlie the preparation of the Income Statement and Retained Earnings Statement and the reporting of other comprehensive income. The requirements for adequate
ARKANSAS SALES AND SERVICE Income Statement For the Month Ended January 31, 2010 (1) Cash Basis (2) Accrual Basis $98,400*
Revenues Expenses Cost of computers & printers:
82,500* Purchased and paid Cost of goods sold Salaries Re
ACCT 251 In termediate Accounting I Chapter 3 Quiz Name_ 1. The double-entry accounting system means a. Each t ransaction is recorded with two journal entries. b. Each i tem is recorded in a journal entry, then in a general ledger account. c. The dual eff
Balance Sheet Date
Current Assets Cash Current investments, at Fair Value Notes Receivable Accounts Receivable Less: Allowance for Doubtful Accounts Inventories Prepaid Office Equipment Total Current Assets Long Term Assets Investments